Naazon

Village Roadshow secures $70 million from lenders and Queensland Government to cover costs

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Assuming Queensland Treasury Corporation is a QLD Gov owned entity, I hope all tourism operators who are in this predicament receive access to similar funding..

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1 hour ago, T-bone said:

Assuming Queensland Treasury Corporation is a QLD Gov owned entity, I hope all tourism operators who are in this predicament receive access to similar funding..

https://www.theaustralian.com.au/breaking-news/queensland-government-provides-dreamworld-owners-with-70-million-lifeline/news-story/7a530db8ce6581ad9a2ebe519884e68a

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Queensland Government provides Dreamworld owners with $70 million lifeline

The owners of embattled Gold Coast theme park Dreamworld have secured a multimillion-dollar loan to ensure the attraction can survive the economic shocks induced by the coronavirus pandemic.

In a statement provided to the Australian Stock Exchange on Friday, Ardent Leisure said it had secured $69.9 million in funding from the Queensland Government as the park continues to grapple with lower admissions.

Gold Coast’s theme parks have suffered during the pandemic, as lockdown restrictions has impacted the number of domestic and international tourists visiting the region.

Ardent Leisure said the additional funding would allow Dreamworld and WhiteWater World to reopen by mid-September.

The package consists of a three-year loan valued at $66.9 million and a $3 million grant that will be used to fund working capital and approved capital expenditure.

The loan is mutually exclusive from other loan facilities that are supporting Ardent Leisure’s US Main Event business.

Ardent Leisure chairman Dr Gary Weiss said the funding was recognition of how important the theme park industry was to the Gold Coast economy.

“The Queensland Government’s foresight in providing this financial assistance package will enable Ardent to reopen its iconic theme parks, continue to employ hundreds of people and, once the COVID-19 is behind us, continue to invest future tourism infrastructure and create more local jobs,” he said.

The company’s SkyPoint Observation Deck and Climb located in Surfers Paradise has already reopened.

 

 

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Hopefully everyone who gets government fines will now be given 10 times more money to help pay them 👍

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3 hours ago, T-bone said:

Assuming Queensland Treasury Corporation is a QLD Gov owned entity, I hope all tourism operators who are in this predicament receive access to similar funding..

Obviously Ardent’s own announcements that suggest that they’re getting similar funding but it is worth noting that QTC is a state owned investment body whose obligations are to ensure a good return on investment for Queensland. It’s not a case of fairness.

 

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5 hours ago, Richard said:

Obviously Ardent’s own announcements that suggest that they’re getting similar funding but it is worth noting that QTC is a state owned investment body whose obligations are to ensure a good return on investment for Queensland. It’s not a case of fairness.

 

My post was before it became known about Ardents grant. That said I wasn’t talking about Ardent, but other icon operators important to the health of the tourism sector. 

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Yeah, fuck that company for accepting help to re-open the park and continue to improve it...

5 hours ago, rappa said:

Hopefully everyone who gets government fines will now be given 10 times more money to help pay them 👍

I got a $7.50 parking ticket the other day. It's fine though, the Government thought it was unfair and I got the $750 COVID supplement the day after so that I could pay my parking ticket 

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17 hours ago, Jdude95 said:

Yeah, fuck that company for accepting help to re-open the park and continue to improve it...

I got a $7.50 parking ticket the other day. It's fine though, the Government thought it was unfair and I got the $750 COVID supplement the day after so that I could pay my parking ticket 

Seems to be about accurate for the way they treat ardent. 

20 hours ago, AlexB said:

Dude, if you stop sucking the lemon, you probably wouldn't be so bitter. Anyone would think you've got some sort of personal vendetta.

My vendetta is the owners of that Company which was a childhood treasure to all is a bloody joke of idiots who couldn’t organize a chook raffle let alone run a theme park. 
Why people are so protective of a group of people who are destroying their insane nostalgia I simply can’t fathom. 

Edited by rappa
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7 hours ago, AlexB said:

Dude, if you stop sucking the lemon, you probably wouldn't be so bitter. Anyone would think you've got some sort of personal vendetta.

you're right

All the parks are bleeding, internationally as well, Universal down 95% we will lose some attractions in oz

Look at the financial happening today with VRL, New boss, say goodbye to everything as you knew it. Will they continue their Asian expansion, Big changes happen with big take overs

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Dreamworld has 5 years to pay back the $70m loan. 
 

Going off how little profit they were making pre-covid, they’ll need more than a coaster to make that feasible, especially without any international tourists and limited domestic 

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Agreed. I can't really see a scenario where DW can pay back $70million in 5 years, or if they can it basically leaves very little if anything going to Ardent. How interested they'd be in an arrangement where they don't see any profit for the better part of 5 years is anyone's guess.

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19 hours ago, rappa said:

My vendetta is the owners of that Company which was a childhood treasure to all is a bloody joke of idiots who couldn’t organize a chook raffle let alone run a theme park. 
Why people are so protective of a group of people who are destroying their insane nostalgia I simply can’t fathom. 

Well I guess at least you’re honest about your bias.

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Absolutely. And if they stop being so bad at everything I’ll stop always saying they are awful 👍

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Dreamworld doesn't need to pay back the $70mil in 5 years. They need to pay back a bit and start showing they have enough of a business entertaining not killing and making a little money to get a loan from someone else.

They will re-borrow to payback the $70mil at the eleventh hour.

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16 minutes ago, Naazon said:

Dreamworld doesn't need to pay back the $70mil in 5 years. They need to pay back a bit and start showing they have enough of a business entertaining not killing and making a little money to get a loan from someone else.

They will re-borrow to payback the $70mil at the eleventh hour.

Who is going to lend them tens of millions to repay an existing debt? No one. They couldn’t even get finance prior to having this new $70m liability on their books 

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Can someone point to me where it states the loan has to be repaid in 5 years? All I have seen is that the loan is a 3 year term with interest. So it’s not an interest free loan.

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1 hour ago, T-bone said:

Can someone point to me where it states the loan has to be repaid in 5 years? All I have seen is that the loan is a 3 year term with interest. So it’s not an interest free loan.

VRL's appears to be a mix of a 1-year and 5-year facility per their ASX release -

Quote

$43 million of the new facility is a short-term facility of 12 months with the balance having a 5-year tenor.

Ardent's is a 3-year facility.

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So does that mean they have to have it paid back at the end of the facility, or do they get said money over the term of 3 years (for example, in ardents case 22 million from the loan a year).

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6 minutes ago, T-bone said:

So does that mean they have to have it paid back at the end of the facility, or do they get said money over the term of 3 years (for example, in ardents case 22 million from the loan a year).

The entire limit would be available at the start, although there may be conditions regarding how and when they can use it.

At expiry they would need to agree to refinance it with QTC or pay it out (either with free cash, which is unlikely, or refinance by another lender).

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